13 steps to investing foolishly
The Motley Fools 13 Steps To Investing Foolishly - A Motley Fool Investment Primer by The Motley Fool
Steps to Investing Foolishly, #13 of 13: Make Friends and Influence Fools
Step 5: Avoid the Biggest Mistake Investors Make
Albert Einstein or maybe it was Yogi Berra called this deceptively simple formula the "greatest mathematical discovery of all time. That's right, just three straightforward inputs can change your life: the amount of money you invest; the rate of return you get; and how much time you have to let your money grow. Since words cannot adequately describe the magical nature of compound interest , let's try a few visuals. Not only have you earned interest, but you've earned interest on your interest. And all you had to do was invest your first paycheck. Behold compound interest in a mildly caffeinated state.
The way we're wired -- our natural inclinations to seek more information, look for patterns, compare options, and even flee to safety -- is great at keeping us out of harm's way. But these same emotional tendencies are also our biggest liability when we're in investing mode. In other words, your brain is to blame for all those boneheaded money mistakes. Just ask uber-investor Warren Buffett. And this is from a guy who has famously said, "Success in investing doesn't correlate with IQ And now, the information you've been waiting for: the secret ingredients to investing success, regardless of education, investing styles, or golf handicaps: Timeline and temperament.
Step 7: Buy Your First Stock. An exciting step in your financial.
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How The Motley Fool can help you invest successfully.
We believe the best person to manage your money is YOU. - Pardon us for interrupting your illustrious investing career for this very important public service announcement: Any money you need in the next month, five months, or five years does not belong in the stock market.
When you're plying your trade in the investment world, calling yourself Foolish note the capital "F" is normally inadvisable. As you've probably surmised, we think quite the opposite. The slightly more detailed back story is this: Our name is in homage to the one character in Shakespearean literature -- the court jester -- who could speak the truth to the king and queen without having his head lopped off. The Fools of yore weren't simply stand-up comics sporting belled jester caps -- they entertained the court with humor that instructed as it amused. More importantly, the Fool was never afraid to question conventional wisdom, particularly when popular thought was detrimental to the kingdom's people. Back in , when The Motley Fool debuted first as a print newsletter which later moved online , we looked around and saw all the conventional Wall Street "wisdom" in the financial world and we wondered why no one was crying foul. So we blatantly ripped off Bill Shakespeare after consulting a few lawyer friends , donned our jester caps a job requirement , and set out to expose what was wrong with Wall Street and counter it with a healthy dose of honest, commonsense Foolishness.
It's proven that as people, we retain more information by sharing it with others. Not only will helping people with their finances help them and bring you big karma points, but it can make you a better investor, too. The world is full of people making bad investment decisions every day. Any one of those millions of investors would have saved their money and avoided a few headaches had some savvy investors paid their knowledge forward. Start sharing today, and those you help won't be the only ones who are better off.